FSR Interviews Jim Balis, Managing Director of CapitalSpring’s Strategic Operation Group

In a recent interview with FSR, Jim Balis, managing director of CapitalSpring’s strategic operation group, discussed how the restaurant industry is still facing its fair share of pandemic-related challenges. Both producers and consumers have seen prices for food, rent, gasoline and a bevy of other goods increase steadily over the last year, and even more so in the last few months. Staffing issues continue to plague operators of franchise and independent restaurants as well.

“If somebody said to me last year that 2021 would be harder than 2020, I would have laughed in their face,” said Balis. “But here we are. Who knew operating in a post-pandemic setting would be harder than operating in a pandemic?”

The easiest way for restaurants to offset inflation and protect margins is through pricing, says Balis.

“At some point the consumer is going to say enough is enough,” he said. “But today, grocery costs are going up as well. The consumer is looking at the alternative and realizing going out to eat isn’t much more than cooking at home, and in some cases dining out is potentially less expensive.”

With many companies increasing wages, offering better benefits and enticing potential hires with incentives like free childcare, those looking to fill open positions are forced to get creative when it comes to attracting new talent.

While there isn’t a panacea for the issues surrounding staffing shortages and supply chain hold ups, Balis says morale in the industry isn’t waning.

CapitalSpring is a private investment firm that focuses specifically on investing in the restaurant industry. The firm has invested $2 billion in more than 60 brands across North America.